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2026/2027  KAN-CSCAO1004U  Risk Management and Corporate Finance

English Title
Risk Management and Corporate Finance

Course information
Language English
Course ECTS 7.5 ECTS
Type Mandatory (also offered as elective)
Level Full Degree Master
Duration One Semester
Start time of the course Autumn
Timetable Course schedule will be posted at calendar.cbs.dk
Study board
Study Board for Markets & Innovation
Programme MSc in Economics and Business Administration - Supply Chain Management (SCM)
Course coordinator
  • Charlotte Østergaard - Department of Finance (FI)
Main academic disciplines
  • Finance
Teaching methods
  • Face-to-face teaching
Last updated on 01-02-2026

Relevant links
Learning objectives
The student should demonstrate clarity in the understanding and presentation of the following learning objectives:
  • Apply capital budgeting techniques and perform valuations.
  • Understand models of risk and return and how to estimate risk and return
  • Understand the impact of different financing decisions on a firm's cash flow.
  • Identify sources of costs and benefits of equity and debt financing.
  • Understand hedging techniques and risk management of corporate risks.
Course prerequisites
Admission req.
Bachelor level
Prerequisites for registering for the exam (activities during the teaching period)
Number of compulsory activities which must be approved (see section 13 of the Programme Regulations): 2
Compulsory home assignments
The purpose of the mandatory assignment is for students to make themselves familiar with calculations and concepts introduced in the lectures, thus practicing the kind of questions they will encounter on the exam.

The student must get 2 out of 4 activities approved in order to attend the ordinary exam.

Assignment 1: Practice exercises related to the first quarter of the course material.
Assignment 2 : Practice exercises related to the second quarter of the course material.
Assignment 3: Practice exercises related to the third quarter of the course material.
Assignment 4:Practice exercises related to the last quarter of the course material.

Students will not have extra opportunities to get the required number of compulsory activities approved prior to the ordinary exam. If a student has not received approval of the required number of compulsory activities or has been ill, the student cannot participate in the ordinary exam.

If a student prior to the retake is still missing approval for the required number of compulsory activities and meets the pre-conditions set out in the program regulations, an extra assignment is possible.

The extra assignment is a 10 page home assignment that will cover the required number of compulsory activities. If approved, the student will be able to attend retake.
Examination
Risk Management and Corporate Finance:
Exam ECTS 7,5
Examination form Written sit-in exam on CBS' computers
Individual or group exam Individual exam
Assignment type Written assignment
Duration 4 hours
Grading scale 7-point grading scale
Examiner(s) One internal examiner
Exam period Autumn
Aids Limited aids, see the list below:
The student is allowed to bring
  • USB key for uploading of notes, books and compendiums in a non-executable format (no applications, application fragments, IT tools etc.)
  • Any calculator
  • In Paper format: Books (including translation dictionaries), compendiums and notes
The student will have access to
  • Canvas
  • The personal drive (S-drive) on CBS´ network
  • Advanced IT application package
Make-up exam/re-exam
Same examination form as the ordinary exam
The number of registered candidates for the make-up examination/re-take examination may warrant that it most appropriately be held as an oral examination. The programme office will inform the students if the make-up examination/re-take examination instead is held as an oral examination including a second examiner or external examiner.
Course content, structure and pedagogical approach

The course builds on the law of one price as the underlying theoretical principle and discusses how financial frictions affects decision-making. It is a fundamental finance course, which complements introductory bachelor level corporate finance courses.

 

The first part of the course provides the students with an understanding of corporate finance. The core elements covered in this part of the course are the valuation of investment projects, corporate finance polices, payout policy, and capital structure choice. The second part of the course investigates corporate risk management and covers financial options, real options, hedging of corporate risk, and international risk management.
Research-based teaching
CBS’ programmes and teaching are research-based. The following types of research-based knowledge and research-like activities are included in this course:
Research-based knowledge
  • Classic and basic theory
  • Methodology
Research-like activities
  • Discussion, critical reflection, modelling
Description of the teaching methods
The course contains the following elements:

• Research and theory based class lectures.
• Class exercises - preparing the student for the written exam.
• Student involvement through exercise classes and discussions.
Feedback during the teaching period
Students are encouraged to active participation in lectures and exercises.

Exercise classes will feature a large number of exercises preparing the student for the written exam. Students are expected to have worked with the exercises before
classes so that they can ask questions and participate in discussions during classes.

Students can use office hours for individual feedback.
Student workload
Lectures 100 hours
Mandatory exercises 10 hours
Exercises 60 hours
Exam 36 hours
Further Information

Minor changes may occur to this course description until 30 June.
Expected literature

“Corporate Finance” by Jonathan Berk and Peter DeMarzo, 5th edition, Pearson

(We will use the newest edition of the book).


Selected academic articles.
Last updated on 01-02-2026